Capital Watch
Bush faces criticism in steel city

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PITTSBURGH — President Bush traveled to this steel-making city yesterday to raise money for his re-election campaign, but he stepped into the contentious debate over his reported plans to rescind tariffs on imported steel that his administration imposed last year.

During his three-hour visit, Bush did not mention the issue.

But the idea of easing tariffs on foreign steel was denounced by a Republican senator who accompanied him on Air Force One, a steel executive who helped organize yesterday's fund-raising lunch, and union members with picket signs. Together, they highlighted how the policy reversal could affect the nation's fragile steel industry and Bush's political fortunes.

In a bit of awkward timing, the president attended the fund-raiser the same week that his aides acknowledged they have reconsidered their March 2002 decision to impose tariffs for three years on most steel imported from Europe, Asia and South America. The tariffs, a marked departure from Bush's free-trade principles, were intended largely to help Rust Belt states such as Pennsylvania by insulating U.S. steel manufacturers long enough to help them gain economic stability.

But the World trade Organization ruled the tariffs illegal, and European countries and Japan have threatened to respond with economic sanctions against various U.S. exports within two weeks.

Administration and industry sources have said Bush may announce his decision late this week.

DeLay scuttles plan to house conventioneers on cruise ship

NEW YORK — Faced with increasing pressure from New York City officials, industry associations and labor leaders, House Majority Leader Tom DeLay decided yesterday to cancel plans to house guests for the 2004 Republican National Convention on a cruise ship off Manhattan, his spokesman said.

The turnaround came hours after the city's hotel association, labor leaders and Democratic Rep. Carolyn Maloney urged Mayor Michael Bloomberg and Gov. George Pataki to pressure GOP leaders to scuttle the plan, saying the river retreat would draw more than $3 million away from city businesses during the Aug. 30-Sept. 2 convention.

The plan was to house visiting convention-goers on the Norwegian Dawn, which features 10 restaurants, 14 bars, swimming pools, basketball courts, movie theaters and a spa and could have accommodated more than 2,200 conventioneers. Critics said convention attendees would otherwise spend their money in city hotels, restaurants and theaters.

Medicare chief to resign with legislation complete

WASHINGTON — Thomas Scully, the outspoken administrator of the agency that oversees Medicare and Medicaid, said yesterday that he is resigning.

His resignation, effective Dec. 16, follows months of speculation that he would step down. Scully had said he would not depart until Congress had finished working on legislation to add prescription-drug coverage and an expanded role for private health plans to Medicare. White House officials said yesterday that Bush is scheduled to sign the bill Monday.

That work completed, Scully said, "I'm checking out of Dodge."

He said he was leaving to spend more time with his three young children and find more lucrative work.

Also ...

Rep. Cass Ballenger, R-N.C., who stirred controversy by blaming the breakup of his 50-year marriage on the stress of living near a leading American Muslim advocacy group and by saying a black congresswoman from Georgia had stirred in him "a little bit of a segregationist feeling," said yesterday he will retire rather than seek re-election to a 10th term in Congress next year.

Copyright © 2003 The Seattle Times Company